The Cornerstones of Free Enterprise 

Hear Peter R. Gleason, NACD president and CEO, explore the modern transformation of corporate purpose and growth in the age of AI and shifting shareholder priorities.

In 2026, we celebrate the 250th anniversary of not only our nation's independence but also of our founders' economic guidebook, Adam Smith's An Inquiry into the Nature and Causes of the Wealth of Nations. We marvel at the survival of the United States and the endurance of the free enterprise system our country and its corporations perpetuate and refine.

Corporate purpose and corporate growth, the twin themes of this issue, are just two elements central to this system, and they're continuing to undergo transformation.

For years, Milton Friedman's view of corporate purpose—shareholder primacy—dominated business. This aligns with one of the cornerstones of free enterprise: the protection of owner interests, which is a key mission of the US Securities and Exchange Commission (SEC).

In a recent survey of our members, we learned that directors by and large want disclosure reforms to focus more on information material to shareholders. This is clearly compatible with the initiative of Paul Atkins, SEC chair, to return the commission to its roots. In his opening remarks at the Digital Asset Summit 2026 in March, Atkins said that the SEC would no longer be the "Securities and Everything Commission."

At the same time, many businesses have aligned themselves with the Business Roundtable's 2019 Statement on the Purpose of a Corporation, which says that companies exist to serve all stakeholders. Under heightened scrutiny, organizations are now reevaluating how to publicly address and disclose their purpose.

As for corporate growth, the changes afoot are even more radical. In my travels around the country visiting local NACD chapters and members, I am noticing a distinct trend toward focusing more on future-minded value than on book-based profits.

As artificial intelligence and other disruptive technologies redefine the approach, scope, and timeline for growth, companies will have to reassess their business models and how they can build on companies' purpose. Their boards must also adapt. ■

Peter R. Gleason
President and CEO of NACD

This article is from the summer 2026 issue of Directorship.